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What Should i ask for route?


MEvans706

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I am in the process of getting a new job and im not going to have time to keep this up like i currently do(much more autonomy at current job). I have 31 triple head quarter machines(mm's, skittles, peanut mm's, reeses, gumballs). Most of the machines are XYZ machines. i dont pay any commissions to any locations. i just make a donation to either local teen challenge or animal shelter(typically will buy them supplies like paper towels, cleaning supplies,etc 4 times a year). As with most routes, some locations perform better than others. typically pull $350-450 every 5 weeks. any ideas on starting price for this? i also have several other triples (some need repaired, some dont) i can throw in. any suggestions? thanks so much fellas!

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In my experience, almost all candy routes are worth at most six months gross...usually 3-5 months gross.  Some routes you can stretch to make a case for 8-10 months if the average justifies it.  Two big reasons for this:  1) The resale value for candy equipment usually pales in comparison to bulk racks and interactive machines (yours is no exception with the XYZ machines) and 2) candy is usually extremely top-heavy.  You show me the average candy route with 30 locations and I'll show you a route where five of the locations comprise 50% of the route's gross and 5-10 locations where the machines have spoilage issues and should probably be pulled.  

 

I'd start by asking 3k and if you get $2500 consider that a win.  Your sales pitch to any buyer that wants to go lower than that is, "I'm asking $80 a location and that's not factoring the extra equipment.  If you want to build your own route with minimal work on your part you're going to pay $40 for a machine and $30 for a locator anyway and these are already on location making you money today".  

 

I will say these can can vary from area to area as well.  Good luck!

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JJ, yes, in Cape. 

Bart, my initial thought was around $3k. As Rick stated correctly, this route is carried by about 10 of the locations. With a little effort it could be greatly improved(dumping the under performing locations in an effort to find better producing ones). Think i have 8-10 extra three heads too. Fellas, i greatly appreciate  your advice on this. I think i'll start at $3K and see what happens. 

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